WOR.AX dominated by bulls lifting the market higher throughout the day
Worleyparsons Limited (WOR.AX) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, WOR.AX finished the week -8.82% lower at 18.61 after losing $0.24 (-1.27%) today, strongly underperforming the market (ASX 200, 0.2%). Today's close at 18.61 marks the lowest recorded closing price since August 21st. The bulls were in full control today, moving the market higher throughout the whole session.
Daily Candlestick Chart (WOR.AX as at Oct 12, 2018):
Friday's trading range was $0.67 (3.7%), that's far above last trading month's daily average range of $0.45. Weekly volatility is also higher, being way above the markets average with the monthly volatility being way above average.
One bullish candlestick pattern matches today's price action, the White Candle.
After trading as low as 18.02 during the day, Worleyparsons Limited bounced off the key support level at 18.05. The failure to close below the support might increase that levels importance as support going forward. The last time this happened on February 8th, WOR.AX lost -3.86% on the following trading day.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day though could signal a potential change in momentum that might lead to a correction back up towards the center of the Bollinger Bands at 19.99.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the eight market conditions that our engine recognized today, the statistics for the Technical Indicators based condition "Close below the lower Bollinger Band" stands out. It's common interpretation of being bullish has so far been confirmed for Worleyparsons Limited in the past. Out of 118 times during the last ten years, WOR.AX closed higher 53.39% of the time on the next trading day. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 56.78% with an average market move of 1.02%.